Digital payment options and video collaboration with policyholders on claims are among the recent technology investments by personal lines insurers outlined in new report from Aite-Novarica
Boston, MA (Oct. 5, 2021) – As the market continues to shift towards the generational expectations of millennials and Gen Z, personal lines insurers are fast-tracking digital initiatives as well as experimentation with AI to respond to immediate customer and agent needs. In a new report, Business and Technology Trends: Personal Lines, research and advisory firm Aite-Novarica Group provides an overview of personal lines carriers’ business and technology issues, data about the marketplace, and more than 15 examples of recent technology investments by personal lines insurers.
“Competition for clients and producers (including agents) is high,” said Martin Higgins, Senior Principal at Aite-Novarica Group. “Insurers continue to look for ways to improve the customer experience while creating competitive advantage through enhancements to products and services.”
“New products have also emerged in the personal lines space, including parametric insurance and usage-based insurance,” adds Stuart Rose, Senior Principal at Aite-Novarica Group and co-author of the new report. “The rise in the gig economy has led insurers to experiment with coverages that can be turned on or off.”
Key points and findings for life/annuity/benefits insurers include:
- The personal lines market leads the way in industry experimentation with AI. A high transactional volume combined with relative simplicity makes personal lines a natural choice for AI usage, especially in claims. The increased availability of personal data from social media and third-party data providers, together with growing computer power to analyze imagery and video, is facilitating AI usage.
- Personal lines insurers also lead in digitalization. Insurers are pushing the envelope in digital self-service. Insurers are also designing products for digital processes and targeting digitally oriented consumers. Generational cohorts like millennials and Gen Z expect digital experiences.
- The increase in digitalization means insurers must make a commensurate investment in fraud detection and prevention and identity verification. Personal lines insurers are primarily investing in solutions for customer service and claims functions.
Click here to access the report.
Aite-Novarica Group’s new Business and Technology Trends report looks at key issues and recent examples of technology investments by personal lines insurers.
Clients of Aite-Novarica Group’s Property & Casualty or Life, Annuities, & Benefits service can download this 20-page report.
About Aite-Novarica Group
Aite-Novarica Group is an advisory firm providing mission-critical insights on technology, regulations, markets, and operations to hundreds of banks, insurers, payments providers, and investment firms—as well as the technology and service providers that support them. Comprising former senior technology, strategy, and operations executives as well as experienced researchers and consultants, our experts provide actionable advice to our client base, leveraging deep insights developed via our extensive network of clients and other industry contacts. For more information, visit aite-novarica.com.
Source: Aite-Novarica GroupTags: Aite-Novarica Group, Digital Innovation, Digital Insurance, InsurTech, payment, personal lines, Strategic Investment, technology investment, trends